Texas AG calls for statewide foreclosure suspension
Texas Attorney General Greg Abbott sent a notice to 30 mortgage servicers ordering a freeze on foreclosures and a review of possible faulty affidavits used in the state. In the notice dated Oct. 4, Abbott writes that affidavits and other documents such as assignments of deeds of trust and appointment of substitute deeds of trust were likely used in Texas. Bank of America (BAC), JPMorgan Chase (JPM), and Ally Financial (GJM) suspended foreclosures in 23 states where employees signed affidavits with no knowledge of the documentation or without a notary. Texas was not one of those states. Other state AG offices have either demanded meetings with the companies or called for a complete moratorium. For a list of the mortgage servicers that received the notice from Abbott click here. He ordered the servicers to identify employees or agents who robo-signed affidavits and other documents, all foreclosures in the state connected to those faulty signatures, and describe how the servicer will ensure other documents were properly executed. Abbott also asked the mortgage servicers to identify others servicers guilty of robo-signing and he wants a response by Oct. 15. Whether the foreclosure took place in a nonjudicial state or not, if the affidavits or other documentation prove illegitimate, that's a violation of Texas state law, Abbott said. Write to Jon Prior. The author holds no relevant investments.